Answer:
The monthly payment is $247.53
Step-by-step explanation:
We need to firstly calculate the total amount to be paid
We have this by using the compound interest formula;
A = I ( 1 + r/n)^nt
A is the total amount to be paid back
I is the amount borrowed which is $8,000
r is the interest rate = 3.6% = 0.036
n is the number of times in a year = 12 (monthly)
t is the number of years = 3
Substituting these values ;
A = 8000(1 + 0.036/12)^(12 * 3)
A = 8000(1 + 0.003)^36
A = 8000(1.003)^36
A = 8,910.94
The monthly payment is this amount divided by the number of months in 3 years which is 36
We have this as;
8,910.94/36 = $247.53
